BILL NUMBER: SB 332	CHAPTERED  10/10/99

	CHAPTER   815
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	AMENDED IN ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   JULY 8, 1999
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   MAY 18, 1999
	AMENDED IN SENATE   MAY 3, 1999
	AMENDED IN SENATE   APRIL 14, 1999

INTRODUCED BY   Senator Sher
   (Principal coauthor:  Senator Burton)
   (Principal Coauthors:  Assembly Members Olberg and Wayne)

                        FEBRUARY 8, 1999

   An act to amend Section 12701 of the Business and Professions
Code, to amend Sections 14513.4, 14515.5, 14536, 14549, 14549.6,
14550, 14551, 14560.5, 14561, 14571, 14571.8, 14573, 14573.5, 14574,
14580, 14581, and 14591.1 of, to amend, repeal, and add Sections
14504 and 14549.5 of, to add Sections 14514.4.1, 14514.7, 14519.5,
14525.5.1, 14585, and 40511 to, to add Chapter 7.5 (commencing with
Section 14588) to Division 12.1 of, to add and repeal Sections
14549.1 and 14549.7 of, to repeal Section 14542 of, to repeal and add
Sections 14551.5, 14560, and 14575 of, the Public Resources Code,
relating to beverage containers, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 332, Sher.  Beverage containers.
   (1) The existing California Beverage Container Recycling and
Litter Reduction Act requires a distributor of specified beverage
containers to pay a redemption payment of 2
to the Department of Conservation, for each beverage container, as
defined, sold or transferred, for deposit in the California Beverage
Container Recycling Fund and provides for an increase in that
payment, as specified.  The money in the fund is continuously
appropriated to the department to pay refund values, processing
payments, and for other purposes.  "Beverage" is defined, for
purposes of the act, to include beer and other malt beverages, wine
and distilled spirit coolers, carbonated mineral and soda waters, and
similar carbonated soft drinks in liquid form that are intended for
human consumption, but excludes from that definition 100% fruit juice
to which carbonation has been added.  a   A violation of the act is
a crime and the penalties for violations of the act are deposited in
the fund.
   Existing law requires each glass container manufacturer to use a
35% minimum percentage of California postfilled glass in the
manufacturing of glass food, drink, or beverage containers.  A
manufacturer is authorized to seek a reduction or waiver of this
requirement from the department.
   This bill would additionally include as beverages, for purposes of
the act, carbonated and noncarbonated water, noncarbonated soft
drinks and sport drinks, specified noncarbonated fruit drinks, coffee
and tea drinks, and carbonated fruit drinks if those products are
sold in plastic, glass, bimetal, or aluminum containers in liquid,
ready-to-drink form and intended for human consumption.  The bill
would exempt any beverage container included within the coverage of
the act on January 1, 2000, from specified labeling requirements,
until January 1, 2001.
   This bill would revise the definitions of the terms "handling fee,"
and "PET container" and would define the terms "nonprofit
convenience zone recycler," "recycler" and "rural region recycler."
   This bill would reduce the minimum percentage of postfilled glass
to 25% if the glass container manufacturer makes a specified
demonstration to the department with regard to its use of mixed color
cullet, as defined.
   This bill would revise the procedure for determining the
commingled rate paid for containers to repeal requirements regarding
the holding of a public hearing and providing information before the
effective date of a new rate, would repeal the existing procedure on
January 1, 2001, and would establish a new procedure, effective
January 1, 2001, for the calculation of a new commingled rate that
includes the requirements for a prior public hearing and providing
information.
   The bill would increase the amount of the redemption payment paid
by distributors to 2.5
.  d   (2) Existing law defines "convenience zone" for the purposes
of the act and requires that every convenience zone is to be served
by at least one certified recycling center, with specified operating
hours.  The Director of Conservation is authorized to grant an
exemption from these convenience zone requirements based on specified
factors, including that the nearest certified recycling center is
within a reasonable distance of the convenience zone being considered
for the exemption.
   This bill would revise the requirements regarding the operating
hours for a recycling center in a rural region and would additionally
include, as a factor to be considered in issuing an exemption from
convenience zone requirements, that the convenience zone has redeemed
less than 60,000 containers per month in the prior 12 months and a
certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
   (3) Existing law requires the department to pay to a processor for
every empty beverage container received by the processor from a
certified recycling center or other program, the sum of the refund
value, 1 3/4% of the refund value for administrative costs, and a
processing payment.  Existing law requires the processor to pay a
certified recycling center or other program the refund value, 1/2 of
1% of the refund value for administrative costs, and the processing
payment.  Existing law also requires a distributor of beverage
containers to pay a redemption payment to the department, less 1/2 of
1% for the distributor's administrative costs.  The redemption
payment made to the department by a distributor of beer and other
malt beverages is required to be made not later than the first day of
the second month following the sale.
   This bill would increase the amount of administrative costs paid
to the processor to 2 1/2% of the refund value, and the
administrative costs paid to the recycling center to 3/4 of 1% and
would increase the administrative costs retained by the distributor
to 1% of those administrative costs.  The bill would increase the
time when the redemption payment by beer and malt beverage
distributors is required to be made to not later than the last day of
the third month following the sale.
   (4) Under the act, the department is required to calculate a
processing fee for each beverage container with a specified scrap
value, which is required to be paid by beverage manufacturers for
each beverage container sold or transferred to a dealer.  Until
January 1, 2000, a processing fee is required to be imposed annually
only if the scrap value for the material is less than the cost of
recycling, and, after that date, a processing fee is required to be
established pursuant to different criteria.  Under the law in effect
until January 1, 2000, the processing fee is reduced in an amount
equal to 25% of the redemption payments projected to be paid by
distributors of beverages sold in that container type for the
previous calendar year.
   This bill would revise the method of calculating the processing
payment and would require the processing payment, to equal the
difference between the scrap value offered to recyclers by willing
purchasers and the cost of recycling containers and a reasonable
financial return.  The bill would require the department to use
specified cost data for the January 1, 2000, processing payment
calculation.  The bill would require the actual processing fee to
equal 65% of the processing payment, but the department would be
required to adjust the amount of the processing fee, based upon the
availability of funds in the processing fee account for that beverage
material type so the amount of the processing fee equals 25% of the
processing payment.
   (5) Existing law requires the department to report specified data
with respect to its responsibilities under the act within 70 days of
each reporting period.
   This bill would extend this period to 130 days.
   (6) Existing law requires the department to transfer an amount
equal to 25% of the redemption payments, and all processing fees,
made for glass, PET, and bimetal beverage containers to,
respectively, the Glass Processing Fee Account, the PET Processing
Fee Account, and the Bimetal Processing Fee Account, for making
processing payments for, and reducing processing fees paid for, these
container types.  After setting aside funds needed for the payment
to refund values and administrative fees, and for these expenditures,
the department is authorized to expend $18,500,000 of the moneys in
the fund, until January 1, 2001, for the payment of handling fees,
and $5,000,000, for payments for curbside programs, until January 1,
2001, to expend $7,000,000 annually for grants to community
conservation corps, and to expend $2,000,000 for grants to nonprofit
organizations or government programs.
   This bill would increase these amounts to $23,500,000 for the
payment of handling fees, $15,000,000 for payment for curbside
programs, and $15,000,000 for grants to community conservation corps.
  The bill would authorize the expenditure of $10,500,000 annually
for payments to cities and counties for beverage container recycling
and litter cleanup activities, and $500,000 for grants for beverage
recycling and litter reduction programs, and would require the
payment of $6,840,000 to the City of San Diego, for a curbside
recycling pilot program that would be terminated on January 1, 2004.
The bill would extend the authorization to expend these funds for
handling fees indefinitely and for curbside programs until an
unspecified date, thereby making an appropriation.  The bill would
require the director to register the operators of curbside programs,
and to adopt a procedure for registration of these programs.  The
bill would include neighborhood dropoff programs, as defined, as
being eligible for those payments for curbside programs.  The bill
would authorize the department to pay each curbside recycling program
a quality glass incentive payment for color-sorted glass collected
by the curbside recycling program, in a total of not more than
$3,000,000 per calendar year until an unspecified date.
   The bill would delete the requirement that the department transfer
25% of the redemption values to those accounts.  The bill would
instead require the department to establish separate processing fee
accounts in the fund for each beverage material type, and would
require the department to transfer funds equal to 75% of the
processing payments and all of the processing fees to those accounts.
  The bill would continuously appropriate the money in those accounts
to the department to make processing payments and reduce processing
fees, thereby making an appropriation.
   The bill would require the department to expend $10,000,000
annually, between January 1, 2000, and January 1, 2002, to undertake
a statewide public education and information campaign and to provide
a report to the Legislature, by January 1, 2002, on the impact of the
campaign.
   The bill would require the department to annually expend $300,000
until January 1, 2003, pursuant to a cooperative agreement with Keep
California Beautiful, to conduct a statewide public education
campaign.
   The bill would specify a procedure for the proportionate reduction
of certain expenditures pursuant to the act and would require the
department to convene a specified advisory group before making
expenditures for the statewide public education and information
campaign.
   The bill would create the Penalty Account in the fund, would
require all civil penalties and fines collected by the department to
be deposited in that account, and would require the department to
transfer the existing fines and civil penalties in the fund to that
account.  The revenues in the account would be available to the
department, only upon appropriation by the Legislature, to carry out
the act.  The bill would make conforming changes.
   (7) Existing law requires the department to adopt guidelines and
methods for paying handling fees to supermarket sites, until January
1, 2001.  Existing law requires the department to convene a hearing
to ensure that handling fees paid to supermarket site recycling
centers are not used for the purpose of engaging in unfair and
predatory pricing.  Existing law provides that, if the department
determines there is clear and convincing evidence that a handling fee
recipient has engaged in unfair and predatory pricing, the
respondent is not eligible to receive handling fees for 3 months.
   This bill would additionally make nonprofit convenience zone
recyclers and rural region recyclers eligible to receive handling
fees and would delete the repeal of the provisions governing the
payment of handling fees, thereby extending those provisions
indefinitely.
   This bill would define the term "unfair and predatory pricing" for
purposes of a new hearing procedure that this bill would establish,
and would make a supermarket site that the department determines has
engaged in unfair and predatory pricing, ineligible to receive
handling fees after the date of that determination.
   The bill would require the department to conduct an audit, by
January 1, 2001, of the handling fees paid to supermarket sites.
   (8) The existing California Integrated Waste Management Act of
1989, which is administered by the California Integrated Waste
Management Board, establishes an integrated waste management program,
including providing for recycling to reduce solid waste disposal.
   This bill would require the board, in consultation with the
department, not later than December 1, 2000, to prepare and submit to
the Legislature a report, as prescribed, that identifies any
duplication or overlap between the California Integrated Waste
Management Act of 1989 and the California Beverage Container
Recycling and Litter Reduction Act with respect to programs
pertaining to public information and education, local government
review and assistance, and recycled materials market development.
   (9) Under existing law, it is unlawful for any person to weigh,
measure, or count any commodity unless the person is licensed as a
weighmaster.  Existing law exempts recycling centers established for
the redemption of empty beverage containers from the laws relating to
weighmasters.
   This bill would additionally exempt, from those laws, certified
recycling centers that purchase empty beverage containers from the
public for recycling.
  (10) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   Since a violation of the requirements imposed by the bill would be
a crime, the bill would impose a state-mandated local program by
creating new crimes.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12701 of the Business and Professions Code is
amended to read:
   12701.  The following persons are not weighmasters:
   (a) Retailers weighing, measuring, or counting commodities for
sale by them in retail stores in the presence of, and directly to,
consumers.
   (b) Except for persons subject to Section 12730, producers of
agricultural commodities or livestock, who weigh commodities produced
or purchased by them or by their producer neighbors, when no charge
is made for the weighing, or when no signed or initialed statement or
memorandum is issued of the weight upon which a purchase or sale of
the commodity is based.
   (c) Common carriers issuing bills of lading on which are recorded,
for the purpose of computing transportation charges, the weights of
commodities offered for transportation, including carriers of
household goods when transporting shipments weighing less than 1,000
pounds.
   (d) Milk samplers and weighers licensed pursuant to Article 8
(commencing with Section 35161) of Chapter 12 of Part 1 of Division
15 of the Food and Agricultural Code, when performing the duties for
which they are licensed.
   (e) Persons who measure the amount of oil, gas, or other fuels for
purposes of royalty computation and payment, or other operations of
fuel and oil companies and their retail outlets.
   (f) Newspaper publishers weighing or counting newspapers for sale
to dealers or distributors.
   (g) Textile maintenance establishments weighing, counting, or
measuring any articles in connection with the business of those
establishments.
   (h) County sanitation districts operating pursuant to Chapter 3
(commencing with Section 4700) of Part 3 of Division 5 of the Health
and Safety Code, garbage and refuse disposal districts operating
pursuant to Chapter 2 (commencing with Section 49100) of Part 8 of
Division 30 of the Public Resources Code, and solid waste facilities,
as defined in Section 40194 of the Public Resources Code.
   (i) Persons who purchase scrap metal or salvage materials pursuant
to a nonprofit recycling program, or recycling centers certified
pursuant to Division 12.1 (commencing with Section 14500) of the
Public Resources Code that purchase empty beverage containers from
the public for recycling.
   (j) Pest control operators licensed pursuant to Chapter 4
(commencing with Section 11701) of Division 6 of the Food and
Agricultural Code.
   (k) Retailers, or recycling centers established solely for the
redemption of empty beverage containers, as that phrase is defined in
Section 14512 of the Public Resources Code, who are weighing,
measuring, or counting salvage or returnable materials for purchase
or redemption by them in retail stores, or, in the case of recycling
centers, on the retail store premises or on a parking lot immediately
adjacent to a retail store which is used for the purpose of parking
by the store customers, directly from and in the presence of the
seller.  "Retailer" means an entity which derives 90 percent or more
of its income from the sale of small quantities of food or nonfood
items, or both, directly to consumers.  "Salvage materials" means
used paper products and used containers made of aluminum, tin, glass,
or plastic.
   (l) Any log scaler who performs log scaling functions, except
weighing, as defined in the United States Forest Service Handbook,
Supplement No. 4 of March 1987.
  SEC. 2.  Section 14504 of the Public Resources Code is amended to
read:
   14504.  (a) "Beverage" means beer and other malt beverages, wine
and distilled spirit coolers, carbonated mineral and soda waters, and
similar carbonated soft drinks in liquid form which are intended for
human consumption.
   (b) "Beverage" does not include wine, or wine from which alcohol
has been removed in whole or in part, whether or not sparkling or
carbonated.
   (c) "Soft drink" does not include 100 percent fruit juice to which
carbonation is added.
   (d) This section shall become inoperative on January 1, 2000, and
as of January 1, 2001, is repealed, unless a later enacted statute
that is enacted before January 1, 2001, deletes or extends the dates
on which it becomes inoperative and is repealed.
  SEC. 3.  Section 14504 is added to the Public Resources Code, to
read:
   14504.  (a) Except as provided in subdivision (b), "beverage"
means any of the following products if those products are in liquid,
ready-to-drink form, and are intended for human consumption:
   (1) Beer and other malt beverages.
   (2) Wine and distilled spirit coolers.
   (3) Carbonated water, including soda and carbonated mineral water.

   (4) Noncarbonated water, including noncarbonated mineral water.
   (5) Carbonated soft drinks.
   (6) Noncarbonated soft drinks and "sport" drinks.
   (7) Except as provided in paragraph (4) of subdivision (b),
noncarbonated fruit drinks that contain any percentage of fruit
juice.
   (8) Coffee and tea drinks.
   (9) Carbonated fruit drinks.
   (b) "Beverage" does not include any of the following:
   (1) Any product sold in a container that is not an aluminum
beverage container, a glass container, a plastic beverage container,
or a bimetal container.
   (2) Wine, or wine from which alcohol has been removed, in whole or
in part, whether or not sparkling or carbonated.
   (3) Milk, medical food, or infant formula.
   (4) One hundred percent fruit juice in containers that are 46
ounces or more in volume.
   (c) This section shall become operative on January 1, 2000.
  SEC. 4.  Section 14513.4 of the Public Resources Code is amended to
read:
   14513.4.  "Handling fee" means an amount paid to an operator of a
supermarket site, a rural region recycler, as defined in Section
14525.5.1, or a nonprofit convenience zone recycler, as defined in
Section 14514.7, that is located in a convenience zone, for every
beverage container redeemed by the operator at the supermarket or
within the zone in which the supermarket site is located, by the
rural region recycler, or by the nonprofit convenience zone recycler.

  SEC. 5.  Section 14514.4.1 is added to the Public Resources Code,
to read:
   14514.4.1.  "Neighborhood dropoff program" means a recycling
program which meets all of the following criteria:
   (a) The program is certified by the department as a dropoff or
collection program, as defined by Section 14511.7.
   (b) The program has been designated by a city, county, or city and
county to provide a recycling opportunity in residential
neighborhoods specified by the city, county, or city and county.
   (c) The program is located in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571.
  SEC. 6.  Section 14514.7 is added to the Public Resources Code, to
read:
   14514.7.  "Nonprofit convenience zone recycler" means a recycling
center that meets all of the following criteria:
   (a) The recycling center is operated by an organization
established under Section 501(c) or 501(d) of Title 26 of the United
States Code.
   (b) The recycling center is certified by the department pursuant
to Section 14538.
   (c) The recycling center is located within a convenience zone, but
is not necessarily a supermarket site.
  SEC. 7.  Section 14515.5 of the Public Resources Code is amended to
read:
   14515.5.  "PET container" means a plastic beverage container
labeled with a "1" pursuant to Section 18015 and subject to this
division.
  SEC. 8.  Section 14519.5 is added to the Public Resources Code, to
read:
   14519.5.  "Recycler" means a recycling center, dropoff or
collection program, or curbside program.
  SEC. 9.  Section 14525.5.1 is added to the Public Resources Code,
to read:
   14525.5.1.  "Rural region recycler" means an operator that is
certified pursuant to subparagraph (A) of paragraph (2) of
subdivision (b) of Section 14571, and who accepts or collects empty
beverage containers from consumers pursuant to Section 14572 with the
intention to recycle them.
  SEC. 10.  Section 14536 of the Public Resources Code is amended to
read:
   14536.  (a) Except as provided in subdivision (b), the director
shall adopt, amend, or repeal all rules and regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (b) (1) The director shall adopt regulations, and may adopt
emergency regulations for the purposes of implementing Sections
14538, 14539, 14541, 14549.1, 14550, 14561, 14574, 14575, and 14591.

   (2) Any emergency regulations, if adopted, shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and for the
purposes of that chapter, including Section 11349.6 of the Government
Code, the adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health and safety, and
general welfare.  Notwithstanding Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, any emergency regulations adopted pursuant to this section
shall be filed with, but not be repealed by, the Office of
Administrative Law and shall remain in effect until revised by the
director.
  SEC. 11.  Section 14542 of the Public Resources Code is repealed.

  SEC. 12.  Section 14549 of the Public Resources Code is amended to
read:
   14549.  (a) Every glass container manufacturer shall report to the
department each month, by a method as determined by the department,
the amount of total tons of new glass food, drink, and beverage
containers made in California by that glass container manufacturer
and the tons of California postfilled glass used in the manufacturing
of those new containers.
   (b) Each glass container manufacturer in the state shall use a
minimum percentage of 35 percent of postfilled glass in the
manufacturing of their glass food, drink, or beverage containers
measured in the aggregate, on an annual basis, except that if a glass
container manufacturer demonstrates to the satisfaction of the
department that its use of postfilled glass during the annual period
is made up of at least 75 percent mixed color cullet, then that
manufacturer shall use a minimum percentage of 25 percent postfilled
glass in the manufacturing of its glass, food, drink, or beverage
containers, measured in the aggregate, on an annual basis.
   (c) A glass container manufacturer may seek a reduction or waiver
of the minimum postfilled glass percentage required to be used in the
manufacture of glass food, drink, or beverage containers pursuant to
subdivision (b).  The department may grant a reduction or waiver of
the percentage requirement if it finds and determines that it is
technologically infeasible for the glass container manufacturer to
achieve the percentage requirement or if the department determines
that a glass container manufacturer cannot achieve the minimum
percentage because of a lack of available glass cullet.
   (d) For the purposes of this section, "mixed color cullet" means
cullet that does not meet the American Society for Testing and
Materials (ASTM) standard specifications for color mix of color
sorted postfilled glass as raw material for the manufacture of glass
containers.
  SEC. 13.  Section 14549.1 is added to the Public Resources Code, to
read:
   14549.1.  (a) In order to improve the quality and marketability of
glass containers collected for recycling by curbside recycling
programs, the department may, consistent with Section 14581 and
subject to the availability of funds, pay a quality glass incentive
payment to curbside recycling programs.  The total amount shall not
exceed three million dollars ($3,000,000) per calendar year.  The
department shall make a quality glass incentive payment based on all
of the following:
   (1) The amount of the quality glass incentive payment shall be up
to twenty-five dollars ($25) per ton, as determined by the
department.
   (2) The department shall make a quality glass incentive payment
only for color-sorted glass beverage containers that are
substantially free of contamination.
   (3) The department shall make a quality glass incentive payment
only for glass beverage containers that are either collected color
sorted by curbside recycling programs, or collected commingled by
curbside recycling programs and subsequently color sorted by the
collector or the operator of a materials recovery facility.
   (4) Only one payment shall be made for each color-sorted glass
beverage container collected.
   (b) This section shall remain in effect until January 1, ____, and
as of that date is repealed, unless a later enacted statute, which
is enacted before January 1, ____, deletes or extends that date.
  SEC. 14.  Section 14549.5 of the Public Resources Code is amended
to read:
   14549.5.  (a) Within 90 days after the effective date of this
section, and annually thereafter, or more frequently as determined to
be necessary by the department, the department shall review and, if
necessary in order to ensure payment of the most accurate commingled
rate feasible, recalculate commingled rates paid for beverage
containers and postfilled containers paid to curbside recycling
programs, collection programs, and recycling centers.  Prior to
recalculating a commingled rate pursuant to this section, the
department shall consult with private and public operators of
curbside recycling programs, collection programs, and recycling
centers concerning the size of the statewide sample, appropriate
sampling methodologies, and alternatives to exclusive reliance on a
statewide commingled rate.
   (b) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.
  SEC. 15.  Section 14549.5 is added to the Public Resources Code, to
read:
   14549.5.  Within 90 days after the effective date of this section,
and annually thereafter, or more frequently as determined to be
necessary by the department, the department shall review and, if
necessary in order to ensure payment of the most accurate commingled
rate feasible, recalculate commingled rates paid for beverage
containers and postfilled containers paid to curbside recycling
programs, collection programs, and recycling centers.  Prior to
recalculating a commingled rate pursuant to this section, the
department shall do all of the following:
   (a) Consult with private and public operators of curbside
recycling programs, collection programs, and recycling centers
concerning the size of the statewide sample, appropriate sampling
methodologies, and alternatives to exclusive reliance on a statewide
commingled rate.
   (b) At least 60 days prior to the effective date of any new
commingled rate, hold a public hearing, after giving notice, to make
available to the public and affected parties the department's review
and any proposed recalculations of the commingled rate.
   (c) At least 60 days prior to the effective date of any new
commingled rate, and upon the request of any party, make available
documentation or studies which were prepared as part of the
department's review of a commingled rate.
   (d) This section shall become operative on January 1, 2001.
  SEC. 16.  Section 14549.6 of the Public Resources Code is amended
to read:
   14549.6.  (a) The department, consistent with Section 14581 and
subject to the availability of funds, shall annually pay a total of
fifteen million dollars ($15,000,000) per fiscal year to operators of
curbside programs and neighborhood dropoff programs.  The payments
shall be for each container collected by the curbside or neighborhood
dropoff programs and properly reported to the department by
processors, based upon all of the following:
   (1) The payment amount shall be calculated based upon the volume
of beverage containers collected by curbside and neighborhood dropoff
programs and reported to the department by processors during the
reporting period of October 1 to December 31, inclusive, of the
fiscal year for which those payments are made.
   (2) The per-container rate shall be calculated by dividing the
total volume of beverage containers collected, as determined pursuant
to paragraph (1), into the sum of fifteen million dollars
($15,000,000).
   (3) The amount to be paid to each operator of a curbside and
neighborhood dropoff program shall be based upon the per-container
rate, calculated pursuant to paragraph (2), multiplied by the
curbside program's total reported beverage container volume during
the period specified in paragraph (1).
   (b) The amounts paid pursuant to this section shall be expended by
operators of curbside and neighborhood dropoff programs only for
activities related to beverage container recycling.
   (c) The department shall disburse payments pursuant to this
section not sooner than the 11th month of the fiscal year for which
the payments are being made, subject to the availability of funds.
  SEC. 17.  Section 14549.7 is added to the Public Resources Code, to
read:
   14549.7.  (a) Consistent with Section 14581, the department shall
pay up to six million eight hundred forty thousand dollars
($6,840,000) to the City of San Diego for a pilot program to expand
that city's curbside recycling program.  Payments shall be contingent
upon the execution of a cooperative agreement between the department
and the City of San Diego.  The cooperative agreement shall require
the City of San Diego to make curbside recycling services available,
on or before January 1, 2003, to a minimum of 190,000 homes that are
not provided, as of January 1, 2000, with curbside recycling, and
shall include an implementation and payment schedule.  The department
shall make these payments once every three months, contingent on the
City of San Diego making satisfactory progress toward implementation
of the terms of the cooperative agreement, except the department
shall make the first payment within 30 days of the signing of the
cooperative agreement.
   (b) This section shall remain in effect until January 1, 2004, and
as of that date is repealed, unless a later enacted statute, which
is enacted before January 1, 2004, deletes or extends that date.
  SEC. 18.  Section 14550 of the Public Resources Code is amended to
read:
   14550.  (a) (1) Every processor shall report to the department for
each month the amount of empty beverage containers, by material type
and weight of container or material, excluding refillable beverage
containers, received from recycling centers and curbside programs for
recycling, and the scrap value paid and revenue received for glass,
PET, and bimetal containers and any beverage container that is
assessed a processing fee.  Every processor shall also report to the
department for each month the amount of other postfilled aluminum,
glass, and plastic food and drink packaging materials sold filled to
consumers in this state and returned for recycling.  These reports
shall be submitted within 10 days after each month, in the form and
manner which the department may prescribe.
   (2) The department shall treat all information reported pursuant
to this section by a processor as commercial or financial information
subject to the procedures established pursuant to Section 14554.
   (b) Every distributor who sells or offers for sale in this state
beverages in aluminum beverage containers, nonaluminum metal beverage
containers, glass beverage containers, plastic beverage containers,
or other beverage containers, including refillable beverage
containers of these types, shall report to the department for each
month the number of beverages sold in these beverage containers in
this state which are labeled pursuant to Section 14561, by material
type and size and weight of container or any other method as the
department may prescribe.  These reports shall be submitted by the
day when payment is due, consistent with the applicable payment
schedule specified in subdivision (a) of Section 14574, in the form
and manner which the department may prescribe.
   (c) Every distributor who sells or offers for sale in this state
beverages in refillable beverage containers and who pays a refund
value to distributors, dealers, or consumers who return these
containers for refilling, shall report to the department for each
month the number of these beverage containers returned empty to be
refilled, by material type and size of container or any other method
which the department may prescribe.  These reports shall be submitted
by the day when payment is due, consistent with the schedule
specified in subdivision (a) of Section 14574, in the form and manner
which the department may prescribe.
   (d) Notwithstanding subdivision (b), a distributor who elects to
make an annual payment pursuant to subdivision (b) of Section 14574
may, upon the approval of the department, submit the reports required
by this section annually to the department.  The reports shall
accompany the annual payment submitted pursuant to Section 14574.
  SEC. 19.  Section 14551 of the Public Resources Code is amended to
read:
   14551.  (a) The department shall establish reporting periods for
the reporting of redemption rates and recycling rates.  Each
reporting period shall be six months.  The department shall determine
all of the following for each reporting period and shall issue a
report on its determinations, within 130 days of the end of each
reporting period:
   (1) Sales of beverages in aluminum beverage containers, bimetal
beverage containers, glass beverage containers, plastic beverage
containers, and other beverage containers in this state, including
refillable beverage containers.
   (2) Returns for recycling, and returns not for recycling, of empty
aluminum beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, and other beverage
containers in this state, including refillable beverage containers
returned to distributors pursuant to Section 14572.  These numbers
shall be calculated using the average current weights of beverage
containers, as determined and reported by the department.  To these
numbers shall be added and separately reported the following, if
greater than, or equal to, zero:
   (A) All empty postfilled aluminum, glass, and plastic food or
drink packaging materials sold in the state, returned for recycling,
and reported by weight to the department which do not have a refund
value less the number specified in subparagraph (B).
   (B) The number of beverage containers which comprise the first
five percentage points of the redemption rate without including the
empty postfilled aluminum, glass, and plastic food or drink packaging
materials sold in the state, returned for recycling and reported by
weight to the department which do not have a refund value.
   (3) An aluminum beverage container redemption rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned, including refillable aluminum beverage containers and empty
postfilled aluminum food or drink packaging material included in
paragraph (2), and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
   (4) An aluminum beverage container recycling rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned for recycling, including refillable aluminum beverage
containers, and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
   (5) A bimetal beverage container redemption rate, the numerator of
which shall be the number of empty bimetal beverage containers
returned, and the denominator of which shall be the number of bimetal
beverage containers sold in this state.
   (6) A bimetal beverage container recycling rate, the numerator of
which shall be the number of empty bimetal containers returned for
recycling, including refillable bimetal beverage containers, and the
denominator of which shall be the number of bimetal beverage
containers sold in this state.
   (7) A glass beverage container redemption rate, the numerator of
which shall be the number of empty glass beverage containers
returned, including refillable glass beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of glass
beverage containers sold in this state.
   (8) A glass beverage container recycling rate, the numerator of
which shall be the number of empty glass beverage containers returned
for recycling, including refillable glass beverage containers, and
the denominator of which shall be the number of glass beverage
containers sold in this state.
   (9) A plastic beverage container redemption rate, the numerator of
which shall be the number of empty plastic beverage containers
returned, including refillable plastic beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of plastic
beverage containers sold in this state.
   (10) A plastic beverage container recycling rate, the numerator of
which shall be the number of empty plastic beverage containers
returned for recycling, including refillable plastic beverage
containers, and the denominator of which shall be the number of
plastic beverage containers sold in this state.
   (11) A redemption rate for other beverage containers, the
numerator of which shall be the number of empty beverage containers
other than those containers specified in paragraphs (1) to (10),
inclusive, returned, and the denominator of which shall be the number
of beverage containers, other than those containers specified in
paragraphs (1) to (10), inclusive, sold in this state.
   (12) A recycling rate for other beverage containers, the numerator
of which shall be the number of empty beverage containers other than
those containers specified in paragraphs (1) to (10), inclusive,
returned for recycling, and the denominator of which shall be the
number of beverage containers, other than those containers specified
in paragraphs (1) to (10), inclusive, sold in this state.
   (13) The department may define categories of other beverage
containers, and report a redemption rate and a recycling rate for
each such category of other beverage containers.
   (14) The volumes of materials collected from certified recycling
centers, by city or county, as requested by the city or county, if
the reporting is consistent with the procedures established pursuant
to Section 14554 to protect
    proprietary information.
   (b) The department shall determine the manner of collecting the
information for the reports specified in subdivision (a), including
establishing procedures, to protect any proprietary information
concerning the sales and purchases.
  SEC. 20.  Section 14551.5 of the Public Resources Code is repealed.

  SEC. 21.  Section 14551.5 is added to the Public Resources Code, to
read:
   14551.5.  (a) The department shall register the operators of
curbside programs pursuant to this section.
   (b) Each curbside program that receives refund values and
administrative fees from certified processors, or that receives
refund values from certified recycling centers, shall register with
the department for an identification number.  No curbside program may
receive refund values or administrative fees without a valid
identification number.
   (c) The director shall adopt, by regulation, a procedure for the
registration of curbside programs.  This procedure shall include
standards and requirements for registration.  These regulations shall
require that all information be submitted to the department under
penalty of perjury.  A curbside program shall meet all of the
standards and requirements contained in the regulations for
registration.
   (d) The department shall require that the identification numbers
received pursuant to this section be used on shipping reports for
material collected by curbside programs pursuant to Sections 14538
and 14539 and on all other reports or documentation required by the
department to administer this division.
  SEC. 22.  Section 14560 of the Public Resources Code is repealed.

  SEC. 23.  Section 14560 is added to the Public Resources Code, to
read:
   14560.  (a) (1) Every beverage distributor shall pay the
department, for deposit into the fund, a redemption payment of two
and one-half cents ($0.025) for every beverage container sold or
offered for sale in this state by the distributor.
   (2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
redemption payments and refund values.
   (b) Except as provided in subdivision (c), every beverage
container sold or offered for sale in this state has a minimum refund
value of five cents ($0.05) for every two beverage containers
redeemed and three cents ($0.03) for every single or unpaired
beverage container redeemed in a single transaction.
   (c) Notwithstanding subdivision (b), a single or unpaired beverage
container of 24 fluid ounces or larger shall have a minimum refund
value of five cents ($0.05).
   (d) (1) The department shall periodically review the fund to
ensure that there are adequate funds in the fund to pay refund values
and other disbursements required by this division.
   (2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the refund values and necessary disbursements required by this
division, the department shall immediately notify the Legislature of
the need for urgent legislative action.
   (3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the fund as necessary, according to the procedure set
forth in Section 14581, to ensure that there are adequate funds in
the fund to pay the refund values and other disbursements required by
this division.
   (e) This section does not apply to any refillable beverage
container.
   (f) The repeal and reenactment of this section by this act enacted
during the 1999-2000 Regular Session shall not affect any
obligations or penalties imposed by this section, as it read on
January 1, 1999.
  SEC. 24.  Section 14560.5 of the Public Resources Code is amended
to read:
   14560.5.  (a) (1) The invoice or other form of accounting of the
transaction submitted by a beverage distributor of soft drinks or
mineral water to a dealer shall separately identify the amount of any
redemption payment imposed on beverage containers pursuant to
Section 14560 and the separate identification of the invoice or other
form of accounting of the transaction shall not combine or include
the gross wholesale price with the redemption payment but shall
separately state the gross amount of the redemption payment for each
type of container included in each delivery.
   (2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine or
distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section 14560 and
the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of container included in each
delivery.  The invoice or other form of accounting of this
transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.
   (3) Notwithstanding Section 14541, the department shall randomly
inspect beverage distributor invoices or other forms of accounting to
ensure compliance with this subdivision.  However, an unintentional
error in addition or subtraction on an invoice or other form of
accounting by a route driver of a distributor shall not be deemed a
violation of this subdivision.
   (4) For the purposes of this subdivision, the term "type of
container" includes the amount of the redemption payment on
containers under 20 ounces and on containers 20 ounces or more.
   (b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment on the
customer cash register receipt provided to the consumer, by the
dealer, which is applied to the purchase of a beverage container.
   (c) (1) A dealer shall separately identify the amount of any
redemption payment imposed on a beverage container in all advertising
of beverage products and on the shelf labels of the dealer's
establishment.  The separate identification shall be accomplished by
stating one of the following:
   (A) The price of the beverage product plus a descriptive term, as
described in paragraph (2).
   (B) The price of the beverage product plus the amount of the
applicable redemption payment and a descriptive term, as described in
paragraph (2).
   (C) The price of the beverage product plus the amount of the
applicable redemption payment, a descriptive term, as described in
paragraph (2), and the total of these two amounts.
   (2) For purposes of paragraph (1), the redemption payment shall be
identified by one of the following descriptive terms:  "California
Redemption Value," "CA Redemption Value," "CRV," "California Cash
Refund," "CA Cash Refund," or any other message specified in Section
14561.
   (3) A dealer shall not include the redemption payment in the total
price of a beverage container in any advertising or on the shelf of
the dealer's establishment.
   (4) This subdivision applies only to a dealer at a dealer location
with a sales and storage area totaling more than 4,000 square feet.

   (5) The penalties specified in Sections 14591 and 14591.1 shall
not be applied to a person who violates this subdivision.
   (d) With regard to the sale of beer and other malt beverages or
wine and distilled spirits cooler beverages, any amount of redemption
payment imposed by this division is subject to Section 25509 of the
Business and Professions Code.
  SEC. 25.  Section 14561 of the Public Resources Code is amended to
read:
   14561.  (a) (1) A beverage manufacturer shall clearly indicate on
every beverage container sold or offered for sale by that beverage
manufacturer in this state the message "CA Redemption Value" or
"California Redemption Value," by either printing or embossing the
beverage container or by securely affixing a clear and prominent
stamp, label, or other device to the beverage container.
   (2) A beverage manufacturer may affix the message "CA Cash Refund"
or "California Cash Refund" on a beverage container sold or offered
for sale by the beverage manufacturer, instead of the message
specified in paragraph (1), but the message shall be affixed in the
manner prescribed in paragraph (1).
   (b) Any refillable beverage container sold or offered for sale is
exempt from this section.  However, any beverage manufacturer or
container manufacturer may place upon, or affix to, a refillable
beverage container, any message that the manufacturer determines to
be appropriate relating to the refund value of the beverage
container.
   (c) No person shall offer to sell, or sell to a consumer a
beverage container subject to subdivision (a) that has not been
labeled pursuant to this section, except for a refillable beverage
container that is exempt from labeling pursuant to subdivision (b).
   (d) The department may require that any beverage container
intended for sale in this state be printed, embossed, stamped,
labeled, or otherwise marked with a universal product code or similar
machine-readable indicia.
   (e) Any beverage container labeled with the message specified in
subdivision (a) shall have the minimum redemption payment established
pursuant to Section 14560, which shall be paid by the distributor to
the department pursuant to Section 14574.
   (f) To the extent not otherwise authorized by this section, a
glass beverage container containing noncarbonated fruit drinks that
contain any percentage of fruit juice, made subject to this division
pursuant to this act amending this section during the 1999 portion of
the 1999-2000 Regular Session, may comply with the requirements of
this section by embossing the container with the message described in
paragraph (1) or (2) of subdivision (a).
   (g) Notwithstanding any other requirement of this section, any
beverage container that is included within the scope of this division
on January 1, 2000, but that was not subject to this division before
that date shall be exempt from the labeling requirements of this
section until January 1, 2001.
  SEC. 26.  Section 14571 of the Public Resources Code is amended to
read:
   14571.  (a) Except as otherwise provided in this chapter, there
shall be at least one certified recycling center or location within
every convenience zone which accepts and pays the refund value, if
any, at one location for all types of empty beverage containers and
is open for business during at least 30 hours per week with a minimum
of five hours of operation occurring during periods other than from
Monday to Friday, from 9 a.m. to 5 p.m.
   (b) (1) Notwithstanding subdivision (a), the department may
require a certified recycling center to operate 15 of its 30 hours of
operation other than during 9 a.m. to 5 p.m.
   (2) Notwithstanding subdivision (a) and paragraph (1), the
department may certify a recycling center that will operate less than
30 hours per week, if all of the following conditions are met:
   (A) The recycling center is in a rural region.  For purposes of
this subparagraph, "rural region" means a nonurban area identified by
the department on an annual basis using Farmers Home Loan
Administration criteria.  Those criteria include, but are not limited
to, places, open country, cities, towns, or census designated places
with populations that are less than 10,000 persons.  The department
may designate an area with a population of between 10,000 and 50,000
persons as a rural region, unless the area is identified as part of,
or associated with, an urban area, as determined by the department on
an individual basis.
   (B) The recycling center agrees to post a sign indicating the
location of the nearest recycling center which is open at least 30
hours per week and which will accept all material types.
   (C) The needs of the community and the goals of this division will
be best served by certification of the operation as a recycling
center.
   (c) Before establishing operating hours for a certified recycling
center pursuant to subdivision (b), the department shall make a
determination that this action is necessary to further the goals of
this division and that the proposed operating hours will not
significantly decrease the ability of consumers to conveniently
return beverage containers for the refund value to a certified
recycling center redeeming all material types.
   (d) For purposes of this section, if the recycling center is
staffed and is not a reverse vending machine, a center is "open for
business" if all of the following requirements are met:
   (1) An employee of the certified recycling center or location is
present during the hours of operation and available to the public to
accept containers and to pay the refund values.
   (2) In addition to the sign specified in subdivision (h), a sign
having a minimum size of two feet by two feet is posted at the
certified recycling center or location indicating that the center or
location is open.  Where allowed by local zoning requirements or
where zoning restrictions apply, the sign shall be of the maximum
allowable size.
   (3) The prices paid, by weight or per container, are posted at the
location.
   (e) Except as provided in subdivision (f), for the purpose of this
section, if the recycling center consists of reverse vending
machines or other unmanned automated equipment, the center is "open
for business" if the equipment is properly functioning, accepting all
types of empty beverage containers at the recycling location, and
paying posted refund values no less than the minimums required by
this division.
   (f) If a recycling center consists of reverse vending machines or
other automated equipment, the recycling center is "open for business"
if the equipment is properly functioning, and accepting all types of
empty beverage containers at one physical recycling location within
the recycling location.
   (g) Whenever a recycling center which is a reverse vending machine
is not "open for business" during the 30 hours of operation required
and posted pursuant to this section and Section 14570, the dealer
which is hosting the reverse vending machine at its place of business
shall redeem all empty beverage container types at all open cash
registers or one designated location in the store, as specified on
the sign required pursuant to subdivision (h).
   (h) In addition to the sign specified in paragraph (2) of
subdivision (d), each reverse vending machine shall be posted with a
clear and conspicuous sign on or near the reverse vending machine
which states that beverage containers may be redeemed by the host
dealer if the machine is nonoperational at any time during the
required 30 hours of operation, pursuant to subdivision (g).  The
department shall determine the size and location of the sign and the
message required to be printed on the sign.
  SEC. 27.  Section 14571.8 of the Public Resources Code is amended
to read:
   14571.8.  (a) No lease entered into by a dealer after January 1,
1987, may contain a leasehold restriction that prohibits or results
in the prohibition of the establishment of a recycling location.
   (b) The director may grant an exemption from the requirements of
Section 14571 for an individual convenience zone only after the
department solicits public testimony on whether or not to provide an
exemption from Section 14571. The solicitation process shall be
designed by the department to ensure that operators of recycling
centers, dealers, and members of the public in the jurisdiction
affected by the proposed exemption are aware of the proposed
exemption.  After evaluation of the testimony and any field review
conducted, the department shall base a decision to exempt a
convenience zone on one, or any combination, of the following
factors:
   (1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the refund
value to a certified recycling center redeeming all material types.
   (2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.
   (3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.
   (4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer's
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer.  However, any lease
executed after January 1, 1987, shall meet the requirements specified
in subdivision (a).
   (5) The convenience zone has redeemed less than 60,000 containers
per month for the prior 12 months and, notwithstanding paragraph (2),
a certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
   (c) The department shall review each convenience zone in which a
certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the exemption
criteria specified in subdivision (b).
   (d) The total number of exemptions granted by the director under
this section shall not exceed 35 percent of the total number of
convenience zones identified pursuant to this section.
   (e) The department shall include in its annual report prepared
pursuant to Section 14542 a report on curbside recycling programs and
on the potential need for exemption authority additional to that
provided by subdivision (d).
   (f) The department may, on its own motion, or upon petition by any
interested person, revoke a convenience zone exemption if either of
the following occurs:
   (1) The condition or conditions which caused the convenience zone
to be exempt no longer exists, and the department determines that the
criteria for an exemption specified in this section, or Section 2715
of Title 14 of the California Code of Regulations, are not presently
applicable to the convenience zone.
   (2) The department determines that the convenience zone exemption
was granted due to an administrative error.
   (g) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.
   (h) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience zone
unless either of the events specified in paragraphs (1) and (2) of
subdivision (f) occur.
  SEC. 28.  Section 14573 of the Public Resources Code is amended to
read:
   14573.  (a) The department shall pay to a processor, for every
empty beverage container received by the processor from a certified
recycling center, curbside program, or dropoff or collection program,
upon presentation of a completed processor invoice accompanied by a
shipping report from the supplier of the material, in the form
adopted by the department, the sum of all of the following amounts:
   (1) The refund value.
   (2) Two and one-half percent of the refund value for
administrative costs.
   (3) The processing payment established pursuant to Section 14575.

   (b) The department shall make the payment required in subdivision
(a) within two working days of the date that the department is
notified of the delivery or within the time determined by the
department to be necessary and adequate.  If the payment is not made
by the Controller to the certified processor within 20 working days
of receipt of the claims schedule, the Controller shall pay the
processor interest at the current prime lending rate for any period
in excess of these 20 working days.
  SEC. 29.  Section 14573.5 of the Public Resources Code is amended
to read:
   14573.5.  (a) Except as provided in Section 14573.6, a processor
shall pay to a certified recycling center, dropoff or collection
program, or curbside program, for all types of empty beverage
containers, by type of beverage container, received by the processor
from a recycling center, curbside program, or dropoff or collection
program, upon receipt by the certified processor of a shipping report
from the supplier of the material, in the form adopted by the
regulations adopted by the department, the sum of all of the
following amounts:
   (1) The refund value.
   (2) Three-fourths of 1 percent of the refund value for
administrative costs.
   (3) The processing payment established pursuant to Section 14575.

   (b) The processor shall make the payment required in subdivision
(a) within two working days of the date that the processor receives
these empty beverage containers, or within the time which the
department determines to be necessary and adequate.  Under the
procedures authorized by the department, the department may authorize
a certified recycling center to cancel containers, and a certified
processor may authorize a certified recycling center to cancel
containers on behalf of the certified processor.
   (c) If the department has set up an accounts receivable procedure
or other procedure for seeking the payment of money improperly
obtained by a certified recycling center from the fund, the
department may reimburse the processor for its payments to that
certified recycling center.
  SEC. 30.  Section 14574 of the Public Resources Code, is amended to
read:
   14574.  (a) A distributor of beverage containers shall pay to the
department the redemption payment for every beverage container, other
than a refillable beverage container, sold or transferred to a
dealer, less 1 percent for the distributor's administrative costs.
   (1) Except as provided in paragraph (2), the payment shall be made
within 40 days of any sale, or in the form and manner which the
department may prescribe.
   (2) The payment made by a distributor of beer and other malt
beverages shall be made not later than the last day of the third
month following the sale.
   (b) (1) Notwithstanding subdivision (a), a distributor may, upon
the approval of the department, elect to make a single annual payment
of redemption payments, if the distributor's projected redemption
payment for a calendar year totals less than ten thousand dollars
($10,000).
   (2) An annual redemption payment made pursuant to this subdivision
is due and payable on or before February 1 for every beverage
container sold or transferred by the distributor to a dealer in the
previous calendar year.
   (3) A distributor shall notify the department of its intent to
make an annual redemption payment pursuant to this subdivision on or
before January 31 of the calendar year preceding the year in which
the payment will be due.
  SEC. 31.  Section 14575 of the Public Resources Code, as added by
Section 3 of Chapter 1 of the Statutes of 1999, is repealed.
  SEC. 32.  Section 14575 is added to the Public Resources Code, to
read:
   14575.  (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the cost of recycling, the department shall on or before January
3, 2000, and annually thereafter, establish a processing fee and a
processing payment for the container, by the type of the material of
the container.
   (b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
   (1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c).  The
department shall determine the statewide weighted average cost to
recycle each beverage container type, which shall serve as the actual
recycling costs for purposes of paragraphs (3) and (4) of
subdivision (c), by conducting a survey of the costs of a
statistically significant sample of certified recycling centers,
excluding those recycling centers receiving a handling fee, for
receiving, handling, storing, transporting, and maintaining
equipment.
   (2) A reasonable financial return for recycling centers.
   (c) The department shall base the processing payment pursuant to
this section upon all of the following:
   (1) Except as specified in paragraph (2), the department shall use
the average scrap values paid to recyclers between October 1, 1998,
and September 30, 1999, for the initial calculation and the same
12-month period directly preceding the year in which the processing
fee is calculated for any subsequent calculation.
   (2)  For material types not included in the program on January 1,
1999, the department shall estimate the scrap value for the initial
calculation based on a sample of average scrap values paid to
recyclers between July 1, 1999, and September 30, 1999.
   (3) Except as specified in subdivision (d), the department shall
use the actual recycling costs for certified recycling centers, as
determined pursuant to paragraph (1) of subdivision (b) by the
department on or before January 1, 2000, for the initial calculation.

   (4) The department shall make all subsequent determinations of the
actual costs for certified recycling centers, pursuant to paragraph
(1) of subdivision (b), on or before January 1, 2001, and every third
year thereafter.
   (d) For the January 1, 2000, processing payment calculation only,
the department shall use the following cost data for certified
recycling centers for the January 1, 1999, calculation:
   (1) Eighty-five dollars and nineteen cents ($85.19) for each ton
of glass containers.
   (2) Four hundred seventeen dollars and ninety-six cents ($417.96)
for each ton of bimetal containers.
   (3) Six hundred forty-two dollars and sixty-nine cents ($642.69)
for each ton of PET plastic containers.
   (4) Six hundred forty-two dollars and sixty-nine cents ($642.69)
for each ton of non-PET plastic containers.
   (e) Except as specified in subdivision (f), the actual processing
fee paid by beverage manufacturers shall equal 65 percent of the
processing payment calculated pursuant to subdivision (b).
   (f) The department, consistent with Section 14581 and subject to
the availability of funds, shall reduce the processing fee paid by
beverage                                             manufacturers
pursuant to subdivision (e) by expending funds in each material
processing fee account, established pursuant to subparagraph (A) of
paragraph (6) of subdivision (a) of Section 14581, so that the amount
of the processing fee equals 25 percent of the processing payment
calculated pursuant to subdivision (b).
   (g) (1) Except as provided in paragraphs (2) and (3), every
beverage manufacturer shall pay to the department the applicable
processing fee for each container sold or transferred to a
distributor or dealer within 40 days of the sale in the form and in
the manner which the department may prescribe.
   (2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code.  If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail to that person
or entity.  The notice shall state that the processing fee shall be
remitted in full within 30 days of issuance of the notice or the
person or entity shall not be permitted to offer that beverage brand
for sale within the state.  If the person or entity fails to remit
the processing fee within 30 days of issuance of the notice, the
department shall notify the Department of Alcoholic Beverage Control
that the certificate holder has failed to comply, and the Department
of Alcoholic Beverage Control shall prohibit the offering or sale of
that beverage brand within the state.
   (B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
   (3) (A) Notwithstanding paragraph (1), a beverage manufacturer
may, upon the approval of the department, elect to make a single
annual payment of processing fees, if the beverage manufacturer's
projected processing fees for a calendar year total less than one
thousand dollars ($1,000).
   (B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
   (C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year preceding the
year in which the payment will be due.
   (4) The department shall pay the processing payments on redeemed
containers to processors, in the same manner as it pays refund values
pursuant to Sections 14573 and 14573.5.  The processor shall pay the
recycling center the entire processing payment representing the
actual cost and financial return incurred by the recycling center, as
specified in subdivision (a).
   (h) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivision (e), by the type of material of the
container.
   (i) The container manufacturer, or a designated agent, shall pay
to, or credit, the account of the beverage manufacturer in an amount
equal to the processing fee.
   (j) The department shall annually, on or before January 1,
determine the statewide average scrap values paid to recyclers by
processors for beverage containers during the 12-month period ending
September 30.  If the department determines that the statewide
average scrap values paid for glass containers is 10 percent or more
above or below the previous year's scrap value, the department shall
adjust the processing payment to equal the difference between the
cost of recycling and the new statewide average scrap value.
  SEC. 33.  Section 14580 of the Public Resources Code is amended to
read:
   14580.  (a) Except as provided in subdivision (d), the department
shall deposit all amounts paid as redemption payments by distributors
pursuant to Section 14574 and all other revenues received into the
California Beverage Container Recycling Fund, which is hereby created
in the State Treasury.  Notwithstanding Section 13340 of the
Government Code, the money in the fund is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year for the following purposes:
   (1) The payment of refund values and administrative fees to
processors pursuant to Section 14573.
   (2) For a reserve for contingencies, which shall not be greater
than an amount equal to 5 percent of the total amount paid to
processors pursuant to Section 14573 during the preceding calendar
year, plus any interest earned on that amount.
   (b) Except as provided in Section 14580.5, the money in the fund
may be expended by the department for the administration of this
division only upon appropriation by the Legislature in the annual
Budget Act.
   (c) After setting aside funds estimated to be needed for
expenditures authorized pursuant to this section, the department
shall set aside funds on a quarterly basis for the purposes specified
in Section 14581.  Notwithstanding Section 13340 of the Government
Code, that money is hereby continuously appropriated to the
department, without regard to fiscal year, for the purposes specified
in Section 14581.
   (d) The department shall deposit all civil penalties or fines
collected pursuant to this division into the Penalty Account, which
is hereby created in the fund.  The money in the Penalty Account may
be expended by the department only upon appropriation by the
Legislature, for purposes of this division.
  SEC. 34.  Section 14581 of the Public Resources Code, as amended by
Section 4 of Chapter 1 of the Statutes of 1999, is amended to read:

   14581.  (a) Subject to the availability of funds, and pursuant to
subdivision (c), the department shall expend the money set aside in
the fund, pursuant to subdivision (c) of Section 14580 for the
purposes of this section:
   (1) Twenty-three million five hundred thousand dollars
($23,500,000) shall be expended annually for the payment of handling
fees required pursuant to Section 14585.
   (2) Fifteen million dollars ($15,000,000)  shall be expended
annually, until January 1, ____, for payments for curbside programs
and neighborhood dropoff programs pursuant to Section 14549.6.
   (3) (A) Fifteen million dollars ($15,000,000) plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants for
beverage container litter reduction programs and recycling programs
issued to either of the following:
   (i) Certified community conservation corps, that were in existence
on September 30, 1999, or that are formed subsequent to that date
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
   (ii) Community conservation corps, that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
   (B) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
   (4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
   (B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
   (C) These funds may not be used for activities unrelated to
beverage container recycling or litter reduction.
   (D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the Department of
Conservation.  The form shall specify the beverage container
recycling or litter reduction activities for which the funds will be
used.
   (E) The Department of Conservation shall annually prepare and
distribute a funding request form to each city, county, or city and
county.  The form shall specify the amount of beverage container
recycling and litter cleanup funds for which the jurisdiction is
eligible.  The form shall not exceed one double-sided page in length,
and may be submitted electronically.  If a city, county, or city and
county does not return the funding request form within 90 days of
receipt of the form from the department, the city, county, or city
and county is not eligible to receive the funds for that funding
cycle.
   (F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county.  The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction.
   (5) (A) Five hundred thousand dollars ($500,000) may be expended
annually in the form of grants for beverage container recycling and
litter reduction programs.
   (B) Up to a total of six million eight hundred forty thousand
dollars ($6,840,000) shall be paid to the City of San Diego, between
January 1, 2000, and January 1, 2004, for a curbside recycling
program conducted pursuant to Section 14549.7.
   (6) (A) The department shall expend the amount necessary to pay
the processing payment established pursuant to subdivision (b) of
Section 14575.  The department shall establish separate processing
fee accounts in the fund for each beverage container material type
for which a processing payment and processing fee is calculated
pursuant to Section 14575, into which account shall be deposited both
of the following:
   (i) All amounts paid as processing fees for each beverage
container material type pursuant to subdivision (g) of Section 14575.

   (ii) Funds equal to pay 75 percent of the processing payments
established in subdivision (b) of Section 14575, in order to reduce
the processing fee to the level provided in subdivision (f) of
Section 14575.
   (B) Notwithstanding Section 13340 of the Government Code, the
money in each processing fee account is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year, for purposes of making processing payments, and reducing
processing fees, pursuant to Section 14575.
   (7) (A) Up to 10 million dollars ($10,000,000) shall be expended
by the department between January 1, 2000, and January 1, 2002, for
the purposes of undertaking a statewide public education and
information campaign aimed at promoting increased recycling of
beverage containers.
   (B) Notwithstanding Section 7550.5 of the Government Code, on or
before January 1, 2002, the department shall provide a report to the
Legislature on the impact of the statewide public education and
information campaign and make recommendations for any future
campaigns.
   (8) Up to three million dollars ($3,000,000) shall be expended
annually, until January 1, ____, for the payment of quality glass
incentive payments pursuant to Section 14549.1.
   (9) (A) Three hundred thousand dollars ($300,000) shall be
expended annually by the department, until January 1, 2003, pursuant
to a cooperative agreement entered into between the department and
Keep California Beautiful, a nonprofit 501(c)(3) organization
chartered by the State of California in 1990, for the purpose of
conducting statewide public education campaigns aimed at preventing
and cleaning up beverage containers and related litter.  The
campaigns shall include, but not be limited to, coordination of Keep
California Beautiful month.
   (B) Prior to making an expenditure pursuant to this paragraph, the
department shall enter into a cooperative agreement with Keep
California Beautiful.
   (C) As part of the cooperative agreement, Keep California
Beautiful shall provide the department with an annual campaign plan
and budget, and a report of previous year campaign activities.
   (D) On or before July 1, 2002, the department shall make a
recommendation to the Legislature on future funding for beverage
container litter prevention and cleanup activities by Keep California
Beautiful.
   (b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a), is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
   (c) (1) The department shall review all funds on a quarterly basis
to ensure that there are adequate funds to make the payments
specified in this section and the processing fee reductions required
pursuant to Section 14575.
   (2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the payments required by this section and the processing fee
reductions required pursuant to Section 14575, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
   (3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the funds as necessary, according to the procedure set
forth in subdivision (d).
   (d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
   (e) Prior to making an expenditure pursuant to paragraph (7) of
subdivision (a), the department shall convene an advisory committee
consisting of representatives of the beverage industry, beverage
container manufacturers, environmental organizations, the recycling
industry, nonprofit organizations, and retailers, to advise the
department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information campaign.

  SEC. 35.  Section 14585 is added to the Public Resources Code, to
read:
   14585.  (a) The department shall adopt guidelines and methods for
paying handling fees to supermarket sites, nonprofit convenience zone
recyclers, or rural region recyclers to provide an incentive for the
redemption of empty beverage containers in convenience zones.  The
guidelines shall include, but not be limited to, all of the
following:
   (1) Handling fees shall be paid on a monthly basis, in the form
and manner adopted by the department.  The department shall require
that claims for the handling fee be filed with the department not
later than the first day of the second month following the month for
which the handling fee is claimed as a condition of receiving any
handling fee.
   (2) To be eligible for any handling fee, a supermarket site
recycling center, nonprofit convenience zone recycler, or rural
region recycler shall redeem not less than 60,000 beverage
containers, and, except for operators of certified recycling centers
that are nonprofit organizations, not more than 500,000 beverage
containers, during the calendar month in which the handling fee is
claimed.
   (3) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
determining the eligibility percentage, any handling fee
calculations, and payments.
   (4) The department shall determine the number of eligible
containers per site for which a handling fee will be paid in the
following manner:
   (A) Each eligible site's combined monthly volume of glass and
plastic beverage containers shall be divided by the site's total
monthly volume of all empty beverage container types.
   (B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of the
site shall be the maximum volume which is eligible for a handling fee
for that month.
   (C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of glass
and plastic beverage containers by 10 percent.  That quotient shall
be the maximum volume that is eligible for a handling fee for that
month.
   (5) The department shall pay a handling fee of 1.8 cents ($0.018)
per eligible beverage container, as determined pursuant to paragraph
(4).
   (6) Notwithstanding paragraph (5), the total handling fee payment
to a supermarket site, nonprofit convenience zone recycler, or rural
region recycler shall not exceed two thousand three hundred dollars
($2,300) per month.
   (7) If the eligible volume in any given month would result in
handling fee payments which exceed the allocation of funds for that
month, as provided in subdivision (b), sites with higher eligible
monthly volumes shall receive handling fees for their entire eligible
monthly volume before sites with lower eligible monthly volumes
receive any handling fees.
   (8) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.
   (B) Every supermarket site operator, nonprofit convenience zone
recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.
   (C) Notwithstanding subparagraph (A), any operator who fails to
provide notification to the department pursuant to subparagraph (B)
shall not be eligible to apply for handling fees.
   (b) The department may allocate the twenty-three million five
hundred thousand dollars ($23,500,000) authorized for expenditure for
the payment of handling fees pursuant to paragraph (1) of
subdivision (a) of Section 14581 on a monthly basis and may carry
over any unexpended monthly allocation to a subsequent month or
months.  However, unexpended monthly allocations shall not be carried
over to a subsequent fiscal year for the purpose of paying handling
fees but may be carried over for any other purpose pursuant to
Section 14581.
   (c) (1) The department shall not make handling fee payments to
more than one certified recycling center in a convenience zone.  If a
dealer is located in more than one convenience zone, the department
shall offer a single handling fee payment to a supermarket site
located at that dealer.  This handling fee payment shall not be split
between the affected zones.  The department shall stop making
handling fee payments if another recycling center certifies to
operate within the convenience zone without receiving payments
pursuant to this section, if the department monitors the performance
of the other recycling center for 60 days and determines that the
recycling center is in compliance with this division.  Any recycling
center that locates in a convenience zone, thereby causing a
preexisting recycling center to become ineligible to receive handling
fee payments, is ineligible to receive any handling fee payments in
that convenience zone.
   (2) The department shall offer a single handling fee payment to a
rural region recycler that is located anywhere inside a convenience
zone that is not served by another certified recycling center and
does either of the following:
   (A) Operates a minimum of 30 hours per week in one convenience
zone.
   (B) Serves two or more convenience zones, and meets all of the
following criteria:
   (i) Is the only certified recycler within each convenience zone.
   (ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.
   (iii) Operates at least 30 hours per week in total for all
convenience zones served.
   (d) The department may require the operator of a supermarket site
or rural region recycler receiving handling fees to maintain records
for each location where beverage containers are redeemed, and may
require the supermarket site or rural region recycler to take any
other action necessary for the department to determine that the
supermarket site or rural region recycler does not receive an
excessive handling fee.
   (e) The department may determine and utilize a standard container
per pound rate, for each material type, for the purpose of
calculating volumes and making handling fee payments.
  SEC. 36.  Chapter 7.5 (commencing with Section 14588) is added to
Division 12.1 of the Public Resources Code, to read:

      CHAPTER  7.5.  PENALTIES FOR UNFAIR RECYCLING COMPETITION

   14588.  It is the intent of the Legislature that handling fees
paid to supermarket site recycling centers pursuant to Section 14585
shall only be used to offset the unique costs of providing convenient
recycling opportunities to consumers at supermarket sites, and that
those fees may not be expended for the purpose of engaging in unfair
and predatory competition in order to reduce recycling rates of other
recycling centers certified pursuant to this division.
   14588.1.  As used in this chapter, "unfair and predatory pricing"
means the offering of a payment to a consumer by a supermarket site,
that receives handling fees for the redemption of a beverage
container, in an amount that exceeds the sum of both of the
following:
   (a) The refund value for that container.
   (b) The average scrap value paid for the container by a certified
recycling center located within a 10-mile radius of the supermarket
site on the date of the alleged occurrence, or, if the allegation is
based upon an advertisement in a newspaper, periodical, or other
publication, the date on which the advertisement was purchased.
   14588.2.  To ensure that handling fees paid to a supermarket site
are not used for the purpose of engaging in unfair and predatory
pricing, and to otherwise further the intent of this chapter, the
department shall, upon the complaint of a person other than the
department, do all of the following:
   (a) Within 30 days of receiving the complaint, the department
shall complete an audit of the payments for the redemption of
beverage containers being offered or paid by the supermarket site,
and by all other certified recycling centers within a 10-mile radius
of the supermarket site, for the purpose of determining whether the
supermarket site is engaged in unfair and predatory pricing.
   (b) If the director determines there is probable cause that a
supermarket site, against which a complaint has been made, has
engaged in unfair and predatory pricing, the director shall, within
30 days of receiving the complaint, convene an informal hearing
before the director, or the director's designee.  At the hearing, the
director, or the director's designee, shall review the audit
conducted pursuant to subdivision (a) and any evidence presented by
the complainant that a supermarket site has engaged in unfair and
predatory pricing.  The director, or the director's designee, shall
also review any evidence presented by the respondent that the
respondent has not engaged in unfair and predatory pricing.  The
respondent shall have the burden of proof in demonstrating that it
has not engaged in unfair and predatory pricing.
   (c) Within 10 days of the completion of the hearing, the director,
or the director's designee, shall determine whether the supermarket
site has engaged in unfair and predatory pricing.  This determination
shall be based upon the audit conducted pursuant to subdivision (a),
and upon any clear and convincing evidence of unfair and predatory
pricing presented at the hearing.
   (d) During the time period from the date of the receipt of a
complaint pursuant to subdivision (a), until the date the director
makes a determination pursuant to subdivision (c), the supermarket
site against which the allegation of unfair and predatory pricing is
made shall not receive handling fees.  However, nothing in this
subdivision shall affect the payment of handling fees to a
supermarket site that is found not to have engaged in unfair and
predatory pricing pursuant to this section, or to the activities of a
supermarket site prior to the date of the alleged unfair and
predatory pricing.
   (e) If, after complying with the procedure established pursuant to
this section, the director, or the director's designee, determines
that a supermarket site has engaged in unfair and predatory pricing,
the site is ineligible to receive handling fees after the date of
that determination.
   (f) The complainant or respondent may obtain a review of the
determination made pursuant to this section by filing in the superior
court a petition for a writ of mandate within 30 days following the
issuance of the determination.  Section 1094.5 of the Code of Civil
Procedure shall govern judicial proceedings pursuant to this
subdivision, except that the court shall exercise its independent
judgment.  If a petition for a writ of mandate is not filed within
the time limits set forth in this subdivision, the determination made
pursuant to this subdivision is not subject to review by any court
or agency.
   (g) If either party appeals the determination of the director, or
the director's designee, pursuant to subdivision (f), and the
department prevails, the department may recover any costs associated
with its defense of the complaint.

SEC. 37.  Section 14591.1 of the Public Resources Code is amended to
read:
   14591.1.  (a) The department may assess penalties pursuant to this
division only after notice and hearing in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.  Each violation of this division is a separate
violation and each day of the violation is a separate violation.  The
department shall deposit all revenues from civil penalties in the
Penalty Account specified in subdivision (g) of Section 14580.
   (b) Any person who intentionally or negligently violates this
division may be assessed a civil penalty by the department of up to
five thousand dollars ($5,000) for each separate violation, or for
continuing violations, for each day that violation occurs.
   (c) Any person who violates this division by an action not subject
to subdivision (b) may be assessed a civil penalty by the department
of up to one thousand dollars ($1,000) for each separate violation,
or for continuing violations, for each day that violation occurs.
   (d) No person may be liable for a civil penalty imposed under
subdivision (b) and for a civil penalty imposed under subdivision (c)
for the same act or failure to act.
  SEC. 38.  Section 40511 is added to the Public Resources Code, to
read:
   40511.  (a) Notwithstanding Section 7550.5 of the Government Code,
on or before December 1, 2000, the board, in consultation with the
Department of Conservation, shall prepare and submit to the
Legislature a report that identifies any duplication or overlap
between the following programs authorized under this division and
Division 12.1 (commencing with Section 14500) administered and funded
by the two agencies:
   (1) Public information and education programs.
   (2) Local government review and assistance programs.
   (3) Recycled materials market development programs.
   (b) The report shall include, but not be limited to, suggested
legislation, budget actions, or administrative actions that could be
taken to eliminate duplication or overlap between the two agencies
and programs.
  SEC. 39.  On or before January 1, 2001, the Department of
Conservation shall conduct an audit of the handling fees paid to
supermarket sites subject to Section 14585 of the Public Resources
Code.  The audit shall include all of the following:
   (a) A review of the costs of supermarket site recycling
operations, excluding those typical operational costs allowable under
the processing fees established pursuant to Section 14575 of the
Public Resources Code.
   (b) An identification of any costs that are unique to supermarket
sites and that would warrant the payment of handling fees for these
sites.
   (c) An evaluation of whether or not the legislative objective to
establish convenient supermarket site recycling centers has been
achieved and, if so, the need to continue such a subsidy program.
   (d) An assessment and evaluation of the reasonableness of
administrative and overhead costs identified as unique to these
supermarket site recycling centers.
  SEC. 40.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
